Please review the Research Foundation’s new Cost Sharing Policy. This policy is posted on the RF public web page with all other policy documents.
Connolly, Anne anne.connolly@rfsuny.org
Any cost sharing that is offered and documented in a proposal becomes a sponsor requirement in the award and a binding financial obligation of the campus. In accordance with the Cost Sharing Policy, the following applies:
Mandatory Cost Sharing – Campuses should only provide cost sharing in a proposal when it is mandatory, required in writing by the sponsor, specified in the program announcement, or identified as an award term and condition.
Voluntary Committed Cost Sharing – Campuses should only provide Voluntary Committed Cost Sharing when it is a critical factor that will contribute to the proposal being competitive and approved for funding; and to the completion of the awarded project/scope-of-work. To potentially help lessen the sponsor requirements and administrative burdens associated with offering voluntary cost sharing, include this statement upfront in the proposal (e.g., budget/narrative): “Cost sharing offered on this project is considered voluntary uncommitted, the level of cost sharing is at the discretion of the recipient unless otherwise stipulated by the award terms and conditions.”
“Cost Sharing Basics for Principal Investigators” that summarizes what PIs should know about cost sharing. Feel free to share this with PIs at your campus to help them understand the changes and their role in the cost sharing process.
This document provides a statement of policy to: ensure compliance with the U.S. federal government requirements for Cost Sharing, and to provide The Research Foundation for The State University of New York ("RF") position on the use of Mandatory, Voluntary Committed, and Voluntary Uncommitted Cost Sharing.
The U.S. federal government requirements for cost sharing are primarily in Office of Management and Budget (OMB Circular A-110, "Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations", Section .23 Cost Sharing or Matching, OMB Circular A-21, "Cost Principles for Educational Institutions", Section J, and OMB Memoranda 01-06, "Clarification of OMB A-21 Treatment of Voluntary Uncommitted Cost Sharing and Tuition Remission Costs", January 05, 2001.
In addition, sponsoring agencies, including non-federal sponsors, can identify agency and/or program specific cost sharing requirements in their proposal solicitations, program announcements, and award terms and conditions.
Statement of Policy
The RF must ensure that cost sharing requirements of sponsored agreements are proposed, accounted for, and reported in a manner consistent with the requirements of the sponsor and the RF. Federally funded projects must meet the requirements set forth in the OMB Circulars A-110 and A-21.
Special Consideration
Any cost sharing that is offered and documented in the proposal (e.g., budget/narrative) becomes a sponsor requirement in the award (e.g., terms and conditions) and a binding financial obligation of the campus.
For the use of Mandatory, Voluntary Committed, and Voluntary Uncommitted Cost Sharing, the following applies:
Mandatory Cost Sharing – Campuses should only provide cost sharing in a proposal when it is Mandatory, required in writing by the sponsor, specified in the program announcement, or identified as an award term and condition.
Voluntary Committed Cost Sharing – Campuses should only provide Voluntary Committed Cost Sharing when it is a critical factor that will contribute to the proposal being competitive and approved for funding; and to the completion of the awarded project/scope-of-work. To potentially help lessen the sponsor requirements and administrative burdens associated with offering voluntary cost sharing, include this statement upfront in the proposal (e.g., budget/narrative): "Cost sharing offered on this project is considered voluntary uncommitted, the level of cost sharing is at the discretion of the recipient unless otherwise stipulated by the award terms and conditions."
The following table outlines the responsibilities for compliance with this Policy:
Responsible Party and Responsibility
The following responsibilities apply to the principal investigator:
Understand and apply the federal government, sponsor-specific, campus, and RF requirements for cost sharing on proposals/awards.Determine the acceptability for including the offer of cost sharing in external proposals to sponsors.
Understand that a cost sharing expenditure must meet the same requirements for cost criteria that apply to any direct or indirect cost expenditure made on an award.
Determine and provide the appropriate resources in relation to the proposal/award budget and project/scope-of-work.
Consider providing cost sharing only when it is mandatory – required by the sponsor in writing.
Evaluate providing voluntary cost sharing – based on the needs of the proposal/award, the project/scope-of-work, the critical factors associated with proposal competiveness for successful funding, and the available campus resources.
The following responsibilities apply to various other campus roles (e.g., deans, provosts, department chairs/directors/administrators, institutional officials, operations managers, vice presidents for research) depending on the campus specific structure:
Understand and apply the federal government, sponsor-specific, campus, and RF requirements for cost sharing on proposals/awards.
Determine the acceptability for including the offer of cost sharing in external proposals to sponsors.
Review and approve cost sharing offered in a proposal to ensure reasonableness with the allocation in relation to the budget and project/scope-of-work.
Ensure that cost sharing offered does not conflict with any cost sharing offered on other proposals/awards, and/or with the academic and other institutional responsibilities of the principal investigator.
Review and submit proposals and accept awards to ensure that cost sharing commitments are in accordance with the federal government requirements for cost criteria.
The following responsibilities apply to campus sponsored program offices (e.g., pre-award, account establishment, post award) depending on the campus specific structure:
Understand and apply the federal government, sponsor-specific, campus, and RF requirements for cost sharing on proposals/awards.
Develop a separate cost sharing budget for proposal submission.
Determine and apply the special considerations/recommendations for voluntary committed and voluntary uncommitted cost sharing, as appropriate.
Review and submit proposals and accept awards to ensure that cost sharing commitments are in accordance with the federal government requirements for cost criteria.
Document, monitor, and report cost sharing in accordance with the federal government requirements throughout the life of the award – and to ensure the cost sharing is met.
Cost Criteria
All cost sharing expenditures must follow the requirements as identified in OMB Circular A-21 and the other applicable federal government regulations. Cost sharing expenditures must meet the same requirements that apply to any direct or indirect cost expenditure made on an award. To determine if a cost sharing expenditure is appropriate the following cost criteria must be applied. Allowable – The cost sharing expenditure must be allowable as specified by the federal government regulations and sponsoring agency. Reasonable – The cost sharing expenditure must be reasonable: the nature of the goods or services acquired or applied, and the amount involved, must reflect the action that a prudent person would take under the circumstances prevailing at the time the decision to incur the cost was made. Allocable – The cost sharing expenditure must be allocated to the sponsored award or activity based on the benefit derived, cause and effect, or other equitable relationship.
Definitions
Cost Sharing – Is that portion of a sponsored program budget that is contributed by the institution and/or other nonfederal sources – it is not reimbursed by the sponsor. For the purpose of this policy, in accordance with OMB Circular A-110, Cost Sharing also means "matching." Mandatory Cost Sharing – Is Cost Sharing that is a required condition of an award or agreed to by the institution and sponsor during sponsored agreement negotiation. Voluntary Committed Cost Sharing – Is Cost Sharing that is not required by the sponsor, but proposed in the budget or narrative with no corresponding sponsor funding requested or awarded. Voluntary Uncommitted Cost Sharing – Is Cost Sharing that is over and above that which is identified and budgeted for in a proposal and award.
Fringe Benefit rate:
http://www.rfsuny.org/media/RFSUNY/Rates/Fringe-Benefits/FringeBenefitRatesforFiscalYear2017.htm
Please review the Research Foundation’s new Cost Sharing Policy. This policy is posted on the RF public web page with all other policy documents.
Connolly, Anne anne.connolly@rfsuny.org
Any cost sharing that is offered and documented in a proposal becomes a sponsor requirement in the award and a binding financial obligation of the campus. In accordance with the Cost Sharing Policy, the following applies:
The following information has been posted on the Cost Sharing Compliance Web page.
- “Cost Sharing Basics for Principal Investigators” that summarizes what PIs should know about cost sharing. Feel free to share this with PIs at your campus to help them understand the changes and their role in the cost sharing process.
· “Cost Sharing: A Guide for Administrators” (version 2)Cost Sharing Policy
518-434-7130
garrett.sanders@rfsuny.org
Reason for Policy
This document provides a statement of policy to: ensure compliance with the U.S. federal government requirements for Cost Sharing, and to provide The Research Foundation for The State University of New York ("RF") position on the use of Mandatory, Voluntary Committed, and Voluntary Uncommitted Cost Sharing.The U.S. federal government requirements for cost sharing are primarily in Office of Management and Budget (OMB Circular A-110, "Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations", Section .23 Cost Sharing or Matching, OMB Circular A-21, "Cost Principles for Educational Institutions", Section J, and OMB Memoranda 01-06, "Clarification of OMB A-21 Treatment of Voluntary Uncommitted Cost Sharing and Tuition Remission Costs", January 05, 2001.
In addition, sponsoring agencies, including non-federal sponsors, can identify agency and/or program specific cost sharing requirements in their proposal solicitations, program announcements, and award terms and conditions.
Statement of Policy
The RF must ensure that cost sharing requirements of sponsored agreements are proposed, accounted for, and reported in a manner consistent with the requirements of the sponsor and the RF. Federally funded projects must meet the requirements set forth in the OMB Circulars A-110 and A-21.Special Consideration
Any cost sharing that is offered and documented in the proposal (e.g., budget/narrative) becomes a sponsor requirement in the award (e.g., terms and conditions) and a binding financial obligation of the campus.For the use of Mandatory, Voluntary Committed, and Voluntary Uncommitted Cost Sharing, the following applies:
Responsibilities
The following table outlines the responsibilities for compliance with this Policy:Cost Criteria
All cost sharing expenditures must follow the requirements as identified in OMB Circular A-21 and the other applicable federal government regulations. Cost sharing expenditures must meet the same requirements that apply to any direct or indirect cost expenditure made on an award. To determine if a cost sharing expenditure is appropriate the following cost criteria must be applied.Allowable – The cost sharing expenditure must be allowable as specified by the federal government regulations and sponsoring agency.
Reasonable – The cost sharing expenditure must be reasonable: the nature of the goods or services acquired or applied, and the amount involved, must reflect the action that a prudent person would take under the circumstances prevailing at the time the decision to incur the cost was made.
Allocable – The cost sharing expenditure must be allocated to the sponsored award or activity based on the benefit derived, cause and effect, or other equitable relationship.
Definitions
Cost Sharing – Is that portion of a sponsored program budget that is contributed by the institution and/or other nonfederal sources – it is not reimbursed by the sponsor. For the purpose of this policy, in accordance with OMB Circular A-110, Cost Sharing also means "matching."Mandatory Cost Sharing – Is Cost Sharing that is a required condition of an award or agreed to by the institution and sponsor during sponsored agreement negotiation.
Voluntary Committed Cost Sharing – Is Cost Sharing that is not required by the sponsor, but proposed in the budget or narrative with no corresponding sponsor funding requested or awarded.
Voluntary Uncommitted Cost Sharing – Is Cost Sharing that is over and above that which is identified and budgeted for in a proposal and award.
Related Information
OMB Circular A-110: Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit OrganizationsOMB Circular A-21: Cost Principles for Educational Institutions
OMB Memoranda 01-06: Clarification of OMB A-21 Treatment of Voluntary Uncommitted Cost Sharing and Tuition Remission Costs, January 05, 2001
Research Foundation: Cost Sharing: Guide for Administrators
State University of New York: Faculty Salary Recovery from Sponsored Programs (Document Number 1002)